Europe Electric Motor Market Size, Share and Outlook - Growth Analysis Report and Forecast Trends (2026-2035)

The energy efficiency factor has increasingly become an important component in the procurement of electric motors in Europe as industry players work toward reducing the amount of electricity consumed. According to the European Commission, electricity consumption by electric motors subject to ecodesign in the EU in 2020 amounted to 1,326 TWh, which constitutes 53% of EU27 electricity consumption. Electricity savings have been estimated to rise from 52 TWh in 2020 to 107 TWh per year through 2030. This is supporting demand for higher-efficiency motor technologies, including IE4 and IE5 solutions, particularly in pumps, compressors, fans and industrial machinery. The Commission is also reviewing the existing motor and variable-speed-drive requirements, with potential new rules targeted for adoption in 2029.

European motor manufacturers are increasingly developing synchronous-reluctance and other magnet-free architectures to reduce reliance on permanent magnets and rare-earth materials. In February 2026, ABB expanded its IE6 Hyper-Efficiency SynRM portfolio to larger motors covering 110-450 kW. According to ABB, the technology does not use any magnets and is recyclable without rare earth materials. ABB also released the IE6 SynRM Motor in May 2026 for hazardous areas compliant with ATEX and IECEx standards. The motor has reportedly been engineered to reduce energy loss by up to 60% compared to conventional IE3 induction motors. These developments indicate growing interest in motor designs that combine high efficiency with alternative material strategies for industrial applications.

Axial flux design is being shifted from specialized to series production in high-performance electric cars. Mercedes-Benz has initiated production of their novel axial-flux electric engine in their Berlin-Marienfelde factory in June 2026, wherein the engine has been fitted into the production model Mercedes-AMG GT 4-Door Coupe. The design uses a compact disc-shaped configuration and provides high power and torque density. Mercedes-Benz states that the front-axle motor can reach speeds exceeding 15,000 rpm. The development demonstrates increasing European investment in alternative motor architectures that can reduce packaging requirements while supporting high-performance electric drivetrains.

The European market is increasingly moving from standalone motor efficiency toward optimisation of complete motor-driven systems. Variable-speed drives can adjust motor speed and output according to changing loads, making them particularly relevant for pumps, fans and compressors. The European Commission notes that optimisation involving correct motor sizing, electronic speed control and digitalisation could provide around 100 TWh per year of electricity-saving potential across EU motor systems. EU ecodesign requirements also require relevant efficiency information at different speed and torque operating points, helping engineers evaluate complete system performance rather than relying only on a motor's rated efficiency.

Manufacturers of electric motors are gradually using their products in applications beyond those used in traditional industrial machines and cars. Valeo has managed to get its first contract in the production of electric motors for drones in 2026, which is a new area in the aerospace industry. There are many areas where Valeo can use its electric motor technology beyond automobiles without having to engage in any development programs. Mercedes-Benz is working on making the Berlin-Marienfelde plant a center of competence in the production of high-performance electric motors. Such developments reflect a broader European trend toward adapting established motor engineering, manufacturing and power-electronics capabilities for emerging applications such as drones, advanced mobility and specialised electrified equipment.